Home Owners Insurance

[Colin16]

My wife and I were recently featured in an article in the Toronto Star related to our Airbnb experience.  I heard a few days later from my insurance broker that he had enquired and none of the companies he represents will insure homeowners who host Airbnb.  I haven't started reaching out to other insurers but this would be a game-changer for me if I get stonewalled.  

Is anyone having a similar experience?  Does anyone have coverage with an enlightened insurer?  It's kind of outrageous but it's just another way that insurers run their game.  If you have a problem and the insurer finds that you are an Airbnb host you may find that, despite your long and positive relationship with that company, that you are not covered.  Even if the claim has NOTHING WHATSOEVER TO DO WITH AN AIRBNB RELATED MATTER.

Thoughts?

ceegee

[Robin4]

@Colin16 Hi Colin, you will find it difficult to obtain hosting insurance anywhere in North America! I am not based in that part of the world and things are very much easier for us here in Australia with 5 companies actively in the field but, as well as compiling a list of insurers in this country I am also interested in doing so for other countries as well for the benefit of hosts. Towergate have entered the market in the UK, and there are two other companies that I am aware of that are issuing product disclosure statements to handle hosting platforms. I will post further details as I can get them!

All hosts should check with their regular insurer as to whether they have any coverage if they are hosting short term rental agreements. Most insurers will cancel household policies if they become aware of a hosting platform being used in their insured space. As you have found out Colin this will generally be the response, but many hosts seem to be oblivious of this, or just simply bury their heads in the sand!

At present there is not a lot of options In North America to obtain hosting insurance. I am aware of a company called Square One Insurance who are based in Vancouver on the west coast and are operating as far east as Ontario where you are. A quick scroll of their online site does list Toronto as just in their coverage area!

To this point they are not covering Quebec, or anything further East. Below is a link to them. I would love to think I could suggest something else, but I can't!

https://www.squareoneinsurance.ca/

I was informed of another company last week but unfortunately have lost track of it. When I can access it again I will post.

I wish you luck Colin, I am afraid you are going to have to do a bit of 'leg work' but, please keep the forum informed and.......don't depend on the host protection scheme!...cheers.....Rob

[Colin16]

Thanks Robin.  Amazingly I had just contacted Square One by email before I opened your response.  They insure my kids place in Toronto and they were very flexible, agressive in pricing and amazingly easy to work with.  I have requested a response to this issue and will keep the community informed as it has huge implications for big Airbnb host hubs like Vancouver and Toronto (and everwhere else in between).

I think an insurer that jumps into this sphere will enjoy a lot of traffic because most insurers are not engaged.  I ain't no statistician but, given that airbnb host places need to be maintained very well and meet basic standards of safety with respect to fire code that they would be ideal clients, not risky ones.  Live and learn.

I appreciate your thoughtful analysis and careful research.  All the best.  Good luck in your hosting experiences.  So far, so fun.

Colin

[Robin4]

@Colin16 Oh Colin, I am so glad to hear that. You are correct with your prediction. Three years ago there was no such thing as 'hosting inurance' in Australia and now there are 5 insurers fighting for business and they are specific to the point where one of their application for insurance questions is...."Name the hosting platform you require coverage for, Airbnb, Stayz"!

Like you in Canada there is a large pot of business here that Insurers could no longer ignore and I do think it has happened sooner here because it is easier to insure for here than in North America....we are possibly a less litigious society and are maybe seen as a a better risk by insurers. I guess the proof is going to come when we see how these insurers handle the claims that will sooner or later come.

If there is some way to do it I would love to sight a PDS (product disclosure statement) from Square One Colin, and in any case please keep me informed of progress you make in this field.

Great hosting to you Colin, I have some really nice memories of Toronto...cheers....Rob

[Colin16]

I talked briefly to a rep there.  I'll do a long-form conversation with them tomorrow.  Indeed they are very enthusiastically embracing the idea of insuring Airbnb hosts - have been doing it for a while as you suggested.  The more conservative firms will likely miss the bus.  This little whelp of a firm will eat up a lot of accounts I will wager. (well I'm not a betting man but you get my drift).

I will try to send you a contract if I can.  I'll get your email address in the event.

Late here, time. to. sleep.

c

[Janine3]

So, quite a lot of time has passed since the 2016 exchanges. I just had a conversation with Square One and learned that their AirBnb/short term stay coverage is contingent on NOT FEEDING YOUR GUESTS.  Even offering yogurt & fruit in the mornings introduces additional libability that they are not willing to assume.! 

hmmmm

[Sunny71]

Thanks for your article.

How does the company deal with insurance claims? 

Are you aware of a host claiming damages and how the company works with issues? 

[Susane1]

I have been with Square One insurance in Vancouver for years. They do insure and welcome airbnbers.

[Berma0]

Oh Canada!  How ahead of the game you are again.

I am in Oregon.  My insurance company is going to cancel my home owners insurance.  If I continue with Airbnb I will have to get commercial insurance which will more then double my yearly premium.

Anyone in the USA have suggestions for home owners insurance that will cover hosting?  This seems like a pretty low risk situation in that I am on site with my guests. 

[Maria238]

I am in California, Bay Area, and my insurance carrier had not heard of airbnb when I called them in March of last year!!

They could not come up with a definitive answer .....

I will follow this conversation closely. Thanks for starting it. 

Maria

[Berma0]

Thanks and I will keep you posted as to what I learn.  My current insurance co gave me a flat NO, forget it unless I buy a commercial plan for a B&B for about $1200.  a year. 

The Farmers Ins. is looking into a combination of renters ins and landlord ins.  and I hope to hear from them tomorrow.

Someone told me to check with California Casualty,  I will call them tomorrow.

It seems there is interest in keeping this conversation going.  In addition Canada and the UK have recognized the market for this kind of insurance so maybe the USA will start to jump in if we can show there is a demand.

[Sharon31]

Again, I have to repeat only bc I wasn't completely clear. I purchased an umbrella policy that was a BnB umbrella for $180 more a yr. They did come out and take pictures of my home.

[Sonja58]

Hi Sharon.  Who is insurance agent?

[Stephanie229]

Hi, Sharon - who is your carrier? I missed that in the thread and am not sure where to find it! Thank you.

[Berma0]

Hi Maria.  I am now covered by Farmers Insurance for up to 2 paying guests at a time. 

I also called the places that Andrew suggested.  I google searched:  Proper Insurance,  Propel Insurance and CBiz.  I think Cbiz has something ready to go.  Propel and Proper have coverage in the works and will contact me as soon as it is approved.  In the mean time I am very happy with Farmers.

Berma